FT : Boom Supersonic jet breaks sound barrier to open way for new ‘Concorde’

Boom Supersonic jet breaks sound barrier to open way for new ‘Concorde’
More than two decades after the last commercial supersonic flight, US start-up’s trial aircraft breaches Mach 1 in California

A test aircraft built by a US start-up has broken the sound barrier for the first time during a flight, potentially paving the way for the return of supersonic commercial travel more than 20 years since Concorde’s final flight. 

Boom Supersonic’s XB-1 successfully exceeded Mach 1, about 770 miles per hour, after reaching an altitude of 34,000 feet above the Mojave desert in California on Tuesday.

The Denver-based company, which is backed by several US tech investors including OpenAI’s Sam Altman, said the flight marked the first time an independently developed jet, rather than one backed by governments, had broken the sound barrier.

Boom, founded in 2014 by chief executive Blake Scholl, hopes to begin carrying passengers on its commercial airliner, Overture, as early as 2029. 

Speaking before the flight, Scholl hailed it as a milestone.

“It’s hard to overstate. It’s been 22 years since we’ve had a civil supersonic flight. The industry has gone backwards and today we are back.”


The era of supersonic commercial flying came to an abrupt end in 2003 with the retirement of Concorde. The aircraft’s high fuel consumption made it extremely expensive to operate, while its loud noise limited its flight paths to transatlantic routes. 

A fatal crash in July 2000 led to the grounding of the entire fleet for almost a year. The September 11 terrorist attacks the following year, which led to a widespread slump in passenger travel, proved to be the final straw for operators British Airways and Air France, prompting the carriers to close down the Concorde programme.

Before Tuesday’s flight, Boom had performed 11 test flights with XB-1 since March last year, most recently reaching speeds of Mach 0.95 — just below the supersonic threshold of Mach 1 or one times the speed of sound.


The XB-1 is about one-third the size of the Overture jet that Boom hopes to use for passenger flights. Designed to carry 64 to 80 passengers, the plane would be smaller than the average commercial airliner today and would cost about $200mn. The company has already secured orders and pre-orders from United Airlines, American Airlines and Japan Airlines to purchase 130 aircraft.

Boom is developing its own engines for the Overture together with Kratos Defense & Security Solutions, which helped design turbines for the F-22 and F-35 fighters.

If successfully developed, Boom’s plane will be capable of flying at Mach 1.7 — twice the speed of today’s fastest commercial aircraft built by Airbus or Boeing. That could allow the aircraft to halve some flight times, making trips between London and Miami in just under five hours and Los Angeles to Honolulu in three hours. It would be designed to fly more than 600 routes around the world. 

Despite Tuesday’s success, taking the project from test stage through to development and launch will be both a technical and financial challenge. Boom is one of the few commercial players still standing. Aerion Supersonic, whose backers included Lockheed Martin and Boeing, collapsed in 2021. Another company, Exosonic, shut down in November last year. 

Boom’s latest $100mn funding round brings its total backing from investors to almost $600mn. Alongside OpenAI’s Altman, backers include financial trader Alex Gerko, founder of XTX Markets, and Reid Hoffman, co-founder of LinkedIn.

The company has also received more than $250mn from additional sources, including the US Air Force and non-refundable deposits from its airline customers.

Some airline executives privately question whether there is any need to return to supersonic air travel — always a niche business when Concorde was operating — particularly given the industry’s struggle to decarbonise.

Scholl said he believed the market for Overture could be “easily over 1,000 aircraft”.

“If we can solve affordability, sustainability and safety, then everyone wants supersonic . . . This [aircraft] builds on decades of progress since the last time we built a supersonic jet,” he added, noting that neither Boeing nor Airbus had built a new plane for 20 years.

Boom expects airlines to be profitable at about $5,000 a seat.

Overture, said Scholl, would be built using new materials such as carbon fibre and would be more fuel-efficient than Concorde. Its engines would also be able to fly sustainable aviation fuel.

FT : Golden Goose stake sale values luxury sports shoe group at €2.2bn

Golden Goose stake sale values luxury sports shoe group at €2.2bn
Transaction comes seven months after majority owner Permira pulled planned IPO of Italian brand

An investment group backed by Alibaba co-founder Joe Tsai has bought a 12 per cent stake in Golden Goose in a deal that values the Italian luxury sports shoe brand at more than €2.2bn, according to people briefed on the situation.

The deal with Hong Kong-based Blue Pool Capital allows Golden Goose’s private equity owner Permira to cash out some of its investment five years after paying just under €1.3bn to buy the business from Carlyle, which had bought it at a €400mn valuation in 2017 and retained a minority stake.

It also comes seven months after Permira pulled a planned listing of the maker of distressed-look trainers in which it was seeking a lower valuation than that achieved in Tuesday’s deal.

The transaction with Blue Pool comes at a time when private equity groups are under pressure to return cash to investors after being hit by a slowdown in dealmaking as rising interest rates dragged on company valuations and made exits more difficult, particularly via listings on European exchanges.

Permira’s acquisition of Golden Goose came just before the Covid-19 pandemic, at a time when rock-bottom interest rates were still keeping borrowing costs low and company valuations high.

It abandoned Golden Goose’s initial public offering last June after bookrunners suggested it would price near the bottom of a previously anticipated range, valuing the company at less than €2bn, the Financial Times previously reported.

While the book was roughly four times subscribed at that price, executives of the London-based buyout group started worrying when French President Emmanuel Macron called snap parliamentary elections, leading shares in other luxury groups to tank and big investors to scrap major commitments to buy Golden Goose shares.

Market participants said at the time that Permira’s record was also a sensitive issue.

Dr Martens, which the group listed in 2021, now trades 80 per cent below its IPO price and has issued multiple profit warnings. French cyber security company Exclusive Networks, which Permira listed in 2021 at €20 per share, now trades at €18.90.

Talks to sell a stake in Golden Goose to Blue Pool started shortly after Permira pulled the IPO, the trainer maker said in a statement, adding that the company had more than doubled its revenues since 2020.

In the nine months to September 2024, Golden Goose reported 12 per cent year-on-year revenue growth, driven primarily by its direct-to-consumer channel, which grew 18 per cent in the period.

>>> US Research Calls II

Research Calls II
  • Upgrades:
    • Affirm (AFRM) upgraded to Neutral from Sell at Compass Point; tgt raised to $61
    • Astera Labs (ALAB) upgraded to Outperform from Market Perform at Northland Capital; tgt $120
    • Bancolombia S.A. (CIB) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $53
    • CNH Industrial (CNH) upgraded to Outperform from Perform at Oppenheimer; tgt $16
    • Victoria's Secret (VSCO) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $53
  • Downgrades:
    • Eaton (ETN) downgraded to Hold from Buy at Melius; tgt $373
    • Johnson Controls (JCI) downgraded to Hold from Buy at Melius; tgt $95
    • Trane (TT) downgraded to Hold from Buy at Melius; tgt $398
    • Vertiv (VRT) downgraded to Hold from Buy at Melius; tgt $125
  • Others:
    • Armada Hoffler Properties (AHH) initiated with a Sector Perform at Scotiabank; tgt $11
    • Cardiol Therapeutics (CRDL) initiated with a Buy at Rodman & Renshaw; tgt $7
    • Eledon Pharmaceuticals (ELDN) initiated with a Buy at Guggenheim; tgt $9
    • Indivior (INDV) initiated with a Buy at Rodman & Renshaw; tgt $16
    • INmune Bio (INMB) initiated with a Buy at Rodman & Renshaw; tgt $23
    • MindMed (MNMD) initiated with an Outperform at Evercore ISI; tgt $23
    • Oklo Inc. (OKLO) initiated with a Buy at Craig Hallum; tgt $44
    • PolyPid Ltd. (PYPD) initiated with a Buy at Rodman & Renshaw; tgt $13
    • Rein Therapeutics (RNTX) initiated with a Buy at Rodman & Renshaw; tgt $8
    • Talphera (TLPH) initiated with a Buy at Rodman & Renshaw; tgt $4

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • GGG -6.8%, CR -5.9% (also increases dividend), SYF -5.2%, PII -4.8%, JBLU -4.4%, PCH -4.3%, TRNS -4%, WSFS -2.2%, WAL -2.1%, ARE -2%, ELS -2%, MRTN -1.8%, ADNT -1.5%, SAP -1.1%, SASR -1%, KMB -0.7%, GM -0.6%
Other news:
  • ATAI -7.4% (topline results from Beckley Psytech's BPL-003 (intranasal 5-meo-dmt benzoate) phase 2a open-label study for alcohol use disorder)
  • JNPR -7.1% (speculation that DOJ is leaning toward rejecting M&A deal with Hewlett Packard Enterprise (HPE))
  • IPX -4.2% (reported quarterly updates)
  • QMCO -3.3% (stock offering; Announces the Next Steps of its Debt Reduction Initiative)
  • CCEC -2.6% (entered into $75 mln Open Market Sale Agreement)
  • SKYH -2.5% (stock offering)
  • APLS -2.2% (approval of SYFOVRE)
  • HESM -1.9% (increases dividend)
  • ENOV -1.4% (filed prospectus supplement covering the resale of up to 971,343 shares of common stock held by Emil Holding II S.à r.l., the former shareholder of LimaCorporate S.p.A.) ING -1.1% (to divest business in Russia to Global Development JSC)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • RCL +4.6%, SANM +1.3% (also increases buyback plan by $300 mln), BRO +1.1%, SBCF +0.9%, SFBS +0.8%, WRB +0.7%, IVZ +0.7%, BPOP +0.7%
Other news:
  • BITF +3.6% (Bitfarms enters LOI for the sale of its Yguazu, Paraguay Site with HIVE Digital Technologies)
  • CLPT +3.4% (FDA clearance for ClearPoint Navigation Software)
  • LTBR +3.3% (Oklo Inc. and Lightbridge Corporation sign MOU outlining plan to conduct feasibility study for co-locating a Lightbridge Commercial-scale Fuel Fabrication Facility at Oklo's proposed commercial fuel fabrication facility)
  • BWXT +3.2% (contracts of over C$1 bln for two nuclear energy projects)
  • HIVE +3.2% (Bitfarms enters LOI for the sale of its Yguazu, Paraguay Site with HIVE Digital Technologies)
  • SYM +3.1% (has both completed the acquisition of the Advanced Systems and Robotics business from Walmart (WMT) and signed the related commercial agreement with Walmart covering the development and deployment of automation systems for Accelerated Pickup and Delivery centers at Walmart stores)
  • PRMB +3% (Announces Commencement of Exchange Offers and Consent Solicitations for Outstanding Senior Notes)
  • JBL +2.8% (filed a prospectus supplement registering the resale of up to an aggregate of 1,158,539 shares of common stock, which may be used by the selling stockholder to resell the Shares)
  • TLN +2.3% (reach reliability must run settlement agreement)
  • OKLO +1.9% (Oklo Inc. and Lightbridge Corporation sign MOU outlining plan to conduct feasibility study for co-locating a Lightbridge Commercial-scale Fuel Fabrication Facility at Oklo's proposed commercial fuel fabrication facility)
  • GLNG +1.4% (sale of shareholding in Avenir LNG Limited)
  • ASTS +1.4% (closes offering of $460.0 million of Convertible Senior Notes due 2032)
  • ES +1.2% (divests Aquarion Water Company; reaffirms long-term growth target)
  • WTRG +1% (awarded $29 mln in funding to remove PFAS)

>>> US Research Calls I

Research Calls I
  • Upgrades:
    • Autodesk (ADSK) upgraded to Outperform from Neutral at Mizuho; tgt raised to $400
    • Ciena (CIEN) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $88
    • Ecolab (ECL) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $280
    • Roper (ROP) upgraded to Buy from Hold at TD Cowen; tgt raised to $615
  • Downgrades:
    • Advanced Micro Devices (AMD) downgraded to Hold from Buy at Melius; tgt lowered to $129
  • Others:
    • Albemarle (ALB) initiated with a Hold at Truist; tgt $96
    • Chemours (CC) initiated with a Buy at Truist; tgt $27
    • Element Solutions (ESI) initiated with a Hold at Truist; tgt $28
    • Expand Energy Corporation (EXE) initiated with a Neutral at Piper Sandler; tgt $96
    • Minerals Tech (MTX) initiated with a Buy at Truist; tgt $103
    • Olin (OLN) initiated with a Hold at Truist; tgt $38
    • Tanger Factory (SKT) initiated with a Market Perform at BMO Capital Markets; tgt $36
    • Tronox (TROX) initiated with a Buy at Truist; tgt $17
    • Westlake Corporation (WLK) initiated with a Buy at Truist; tgt $168

>>> Boeing misses by $2.68, reports revs in-line with last week's guidance; impa

Boeing misses by $2.68, reports revs in-line with last week's guidance; impacted by previously announced IAM work stoppage (175.19)
  • Reports Q4 (Dec) core (non-GAAP) loss of $(5.90) per share, $2.68 worse than the FactSet Consensus of ($3.22); revenues fell 30.8% year/year to $15.24 bln vs the $15.68 bln FactSet Consensus and in-line with its $15.2 bln guidance from last week.
  • Co says results were impacted by previously announced IAM work stoppage and agreement, charges for certain defense programs, and costs associated with workforce reductions announced last year. Co reported operating cash flow of ($3.5) billion and free cash flow of ($4.1) bln.
  • "We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan," said Kelly Ortberg, Boeing president and chief executive officer. "My team and I are focused on making the fundamental changes needed to fully recover our company's performance and restore trust with our customers, employees, suppliers..."
  • Segment Performance:
    • Commercial Airplanes Q4 segment revenue fell 55% yr/yr to $4.76 bln with (43.9)% segment operating margin.
      • Results reflect the previously announced impacts associated with the IAM work stoppage and agreement including lower deliveries and pre-tax charges of $1.1 bln on the 777X and 767 programs.
      • The 737 program resumed production in the quarter and plans to gradually increase production rate.
      • The 787 program exited the year at a production rate of five per month and recently announced plans to expand South Carolina operations.
      • In January, the 777X program resumed FAA certification flight testing, and the company still anticipates first delivery of the 777-9 in 2026.
      • Commercial Airplanes booked 204 net orders in the quarter, including 100 737-10 airplanes for Pegasus Airlines and 30 787-9 airplanes for flydubai.
      • Commercial Airplanes delivered 57 airplanes during the quarter and backlog included over 5,500 airplanes valued at $435 bln.
    • Defense, Space & Security Q4 segment revenue fell 20% yr/yr to $5.41 bln with (41.9%) operating margin.
      • In January, the U.S. Air Force announced an updated acquisition approach for the T-7A Red Hawk that allows the company to provide a production-ready configuration to the customer prior to low-rate initial production, which better supports the operational needs of the customer and reduces future production risk.
      • During the quarter, Defense, Space & Security captured an award from the U.S. Air Force for 15 KC-46A Tankers, secured an order for seven P-8A Poseidon aircraft from the U.S. Navy, and delivered the final T-7A Red Hawk engineering and manufacturing development aircraft to the U.S. Air Force.
      • Backlog at Defense, Space & Security was $64 billion, of which 29% represents orders from customers outside the US.G
    • Global Services Q4 segment revenue rose 6% yr/yr to $5.12 bln with 19.5% operating margin reflecting higher commercial volume and mix. During the quarter, Global Services secured awards for C-17 sustainment and a contract for F-15 Japan Super Interceptor upgrade services from the U.S. Air Force.

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • LTBR +6.4%, BITF +5.7%, OKLO +4.2%, BWXT +3.7%, SBCF +3.3%, HIVE +3.2%, TLN +3.1%, PRMB +2.8%, GLNG +2.5%, RCL +2.5%, WTRG +2.1%, ASTS +1.8%, NUE +1.7%, WRB +1.4%, NBIX +1.2%, ES +1.2%, ET +1.1%, CTRA +1.1%, BRO +1.1%, GM +1%, JBL +0.9%, SFBS +0.8%, PSN +0.7%, LNTH +0.7%
  • Gapping down:
    • PII -7.1%, SYF -7%, CR -5.9%, PCH -4.3%, IPX -4.2%, GGG -3.5%, KMB -3.5%, TRNS -3%, CLPT -2.9%, APLS -2.7%, CCEC -2.6%, SKYH -2.5%, WSFS -2.2%, WAL -2.1%, ELS -2%, HESM -1.9%, MRTN -1.8%, AKRO -1.6%, ING -1.1%, BLTE -0.9%, ETNB -0.8%, SAP -0.8%, TKC -0.7%